New ITR form asks for detailed salary breakup; also hefty fines for late filing

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The Central Board of Direct Taxes (CBDT) has notified the forms for filing returns in AY 2018-19. The forms apply to income earned in the financial year 2017-18.

ITR Sahaj – This is a one-page form applicable to individuals with income only from salary up to Rs 50 lakh, one house property and other income (such as from bank interest). It does not apply to individuals with capital gains or income from business and profession. About 3 crore assessees file their returns using this form. A key change to this form has been that a detailed break-up of salary and house property income must now be furnished. (Download ITR1 Sahaj)

ITR 2 – This form applies to individuals who have income from any source other than income from business and profession. (Download ITR 2)

ITR 3 – This form applies to people who have income from business and profession. (Download ITR3)

ITR 4 – This form applies to individuals with income from business and profession who are opting for presumptive taxation. (Download ITR4)

NRIs will have to mention the details of at least one foreign bank account to avail of income tax refunds. However, the requirement to provide details of cash deposits post demonetisation has been done away with.

ITR (Income Tax Return) forms have to be filed electronically and can be verified electronically, through net banking, Aadhar OTP (one-time password) or an electronic verification code generated through the IT department’s website, similar to last year.

However, the following types of assessees can file paper returns:

Individuals who are above the age of 80

Individuals whose income does not exceed Rs 5 lakh and are not claiming a refund.

Other key changes

The penalty for late filing

The deadline for filing income tax returns for individuals is 31st July. From this assessment year onwards, missing this deadline will attract a penalty.

This penalty can extend to Rs 5,000 if you file by 31st December of the same year (eg: 31st December 2018) and Rs 10,000 if you file after this date.

Revision Time Limit Reduced

The time limit for revising your return has also been reduced from this financial year. The previous limit was two years from the end of the financial year to which the return applies. For example, the revision limit would have previously been 31st March 2020 for returns relating to FY 18 (ending on 31st March 2018). However, from this year (FY 2018-19), returns can only be revised within one year of the end of the financial year, by 31st March 2019.